investment

As of September 2014, 181 institutions and local governments as well as 656 individual investors representing more than $50 billion in assets had pledged to join the growing fossil fuel divestment movement, which seeks to take investments away from the oil, gas and coal companies that are cooking our atmosphere and reinvest that money in the development of a low-carbon economy.

Enter Daniel Fischel, chairman and president of economic consulting firm Compass Lexecon, who recently published an op-ed in the Wall Street Journal called “The Feel-Good Folly of Fossil-Fuel Divestment” in which he discussed the findings of a forthcoming report that “indicates that fossil-fuel divestment could significantly harm an investment portfolio.”

Fischel goes out of his way to appear to have the interests of the poor universities called on to divest at heart: “Every bit of economic and quantitative evidence available to us today shows that the only entities punished under a fossil-fuel divestment regime are the schools actually doing the divesting,” he concludes.

You had to get past the WSJ’s paywall and then read to the bottom of the piece before you got to the most salient point: “The report discussed in this op-ed, ‘Fossil Fuel Divestment: A Costly and Ineffective Investment Strategy,’ was financed by the Independent Petroleum Association of America.”

At least $83 billion USD in financing was provided to 65 coal mining and energy companies last year by 92 of the world’s leading commercial banks, according to a Dutch report published Wednesday.

Leading banks provided $500 billion in financing for the coal industry through 2,283 lending and underwriting transactions between 2005 and April 2014, said the report Banking on Coal 2014, which was released by BankTrack in Nijmegen.

The report said JPMorgan Chase was the top financier between 2005 and this year, lending more than $27 billion, while Citi, in second place, lent $25.8 billion and third-place RBS provided $22.9 billion to coal-related borrowing.

Bank finance for coal is increasing rapidly, the report said, adding 2013 was a record year for coal finance, with commercial banks providing more than $88 billion to the main 65 coal companies – over four times the amount provided in 2005.

Investments in renewable energies and low-carbon infrastructure can help the environment and the economy at the same time, says a comprehensive new report released Tuesday.

The report — Better Growth Better Climate — found that about US $90 trillion will likely be invested in infrastructure in the world’s cities, agriculture and energy systems over the next 15 years, unleashing multiple benefits including jobs, health, business productivity and quality of life.

“The decisions we make now will determine the future of our economy and our climate,” Nicholas Stern, Co-Chair of the Global Commission on the Economy and Climate, said in a media release.

“If we choose low-carbon investment we can generate strong, high-quality growth – not just in the future, but now. But if we continue down the high-carbon route, climate change will bring severe risks to long-term prosperity,” he said.

Felipe Calderón, Chair of the Global Commission on the Economy and Climate, said the report refutes the idea that humankind must choose between fighting climate change or growing the world’s economy.

“That is a false dilemma,” Calderón said. “Today’s report details compelling evidence on how technological change is driving new opportunities to improve growth, create jobs, boost company profits and spur economic development. The report sends a clear message to government and private sector leaders: we can improve the economy and tackle climate change at the same time.”

A total of $1.1 trillion USD earmarked for risky carbon-intensive oil sector investments need to be challenged by investors, according to a new report released today by the Carbon Tracker Initiative.

The research identifies oil reserves in the Arctic, oilsands and in deepwater deposits at the high end of the carbon/capital cost curve. Projects in this category “make neither economic nor climate sense” and won’t fit into a carbon-constrained world looking to limit oil-related emissions, Carbon Tracker states in a press release.

The report highlights the high risk of Alberta oilsands investment, noting the reserves “remain the prime candidate for avoiding high cost projects” due to the region’s landlocked position and limited access to market.

In last week's State of the Union address, President Obama reiterated his vision for clean energy and urgent action on global warming. With TransCanada’s Keystone XL tar sands pipeline on the frontlines and looking threatened, oil industry supporters are suddenly desperate to look like the environmental and climate risks of the tar sands are under control.

But there’s a massive credibility gap as Canada’s contribution to global warming is spiralling out of control, with the reckless expansion of the tar sands.

We’ve always believed that actions speak louder than words. So while the oil industry and government embark on a pro-tar sands PR campaign, let’s look at how Canada has behaved on climate action and the environmental risks of the tar sands.

“Canadians generally and investors specifically should understand that these decisions are not the beginning of a trend but rather the end of a trend,” said Mr. Harper. The full meaning of that statement, however, remains to be seen. The Harper government's decision to ratify FIPA may mean deals done with China, like today's deal with CNOOC, will carry a new significance.

The government previously raised the threshold for official review of foreign takeovers from $330 million to $1 billion, signaling open arms to potential foreign investors with an eye on mega projects like the Alberta tar sands. However, today that threshold was returned to $330 million for state-owned enterprises.

“To be blunt, Canadians have not spent years reducing ownership of sectors of the economy by our own governments only to see them bought and controlled by foreign governments instead,” Mr. Harper said.

Just three short years ago, it appeared that North America was on the verge of finally kicking that nasty dirty energy addiction that was crippling our economies and our energy independence. The United States had elected a president (Barack Obama) who set incredibly lofty goals for renewable energy targets, and green energy investments across the continent were higher than anywhere else in the world.

A recent report published in March by the Ethical Funds Company found that out of 48 Canadian oil and gas companies studied, only 2 were responding in any meaningful way to address the risks associated with global warming; Shell Canada and Suncor.

Using a wide variety of sustainability metrics, EFC scored each company to determine how well they are prepared to meet the increasing demand for environmentally and sustainably sound practices in the oil and gas sector as it becomes more and more clear that climate change is a reality and will have a significant effect on operations and investor relations.

Democracy is utterly dependent upon an electorate that is accurately informed. In promoting climate change denial (and often denying their responsibility for doing so) industry has done more than endanger the environment. It has undermined democracy.

There is a vast difference between putting forth a point of view, honestly held, and intentionally sowing the seeds of confusion. Free speech does not include the right to deceive. Deception is not a point of view. And the right to disagree does not include a right to intentionally subvert the public awareness.